-
From 2025, competition with European batteries will be inevitable… Essential to develop next-generation batteries and foster human
resources -

It is pointed out that
Korean companies need to secure stable supply of raw materials for batteries in
order to remain competitiveness in the European EV battery market.

According to the report
titled ‘Key Issues in Electric Vehicle Battery Development Policies of Europe
and Implications’ issued by the Brussels Branch of the Korea International
Trade Association (Chairman: Kim Young-ju) on August 14th, 408,000
Electric Cars were sold in Europe last year, increased by 33 percent
year-on-year, and over 4 million units are forecast to be sold in 2025. The EV
battery market is also expected to grow to € 250 billion by 2025.

Global EV battery production
is led by Asian countries such as China and South Korea, with only 4 percent of
European production. Consequently, the European auto industry, including Audi
and Volvo, has decided to invest 145 billion Euros in the production of
electric vehicle batteries for 10 years. The European Commission also launched
the European Battery Union in 2017 to establish a self-sustaining ecosystem
from securing raw materials for electric vehicle batteries to research and
development (R & D), manufacturing, use and recycling of core materials
with concrete action plans and implementation monitoring.

The report points out,“Korean companies, including LG Chem, SK Innovation, and Samsung SDI, have
occupied an important position in the European EV battery supply chain through
local investment. However, full-scale competition will be inevitable from
around 2025 when the European automakers’investment is completed and their
batteries are in full production.”

According to the report,
“South Korea is a technological power house in the battery and materials
sector, but its self-supply of raw materials, which takes up a high proportion
of battery cost, is insufficient.” The report advises, “South Korea needs to work on not only the ways to secure stable
supply of raw materials but also developing next-generation batteries, securing
stable suppliers, fostering human resources, improving related regulations and
building infrastructure.”

Choi Kyung-yoon, General
Manager at the Brussels Branch of the Korea International Trade Association,
said, “European countries
are expected to actively promote the electric vehicle battery industry as the
new President of the European Commission Von der Leyen has vowed to create the EU
that focuses on eco-friendly policies.” He also stressed, “For the sustainable growth of the EV battery industry, South Korea
needs to provide active support.”